EX-99.1 2 q32016exhibit991.htm EXHIBIT 99.1 Document

Exhibit 99.1

fitbitlogoimagea01.jpg

Fitbit Reports Third Quarter Revenue Growth of 23% to $504M,
GAAP Diluted EPS of $0.11, and Non-GAAP Diluted EPS of $0.19

SAN FRANCISCO - November 2, 2016 - Fitbit, Inc. (NYSE:FIT), the leader in the connected health and fitness market, today reported revenue of $504 million, GAAP diluted net income per share of $0.11, non-GAAP diluted net income per share of $0.19, GAAP net income of $26 million, and Adjusted EBITDA of $81 million, for its third quarter of 2016.

“I am pleased to see positive reception for our new products launched in the third quarter. We are attracting new customers while our existing ones are upgrading their devices, underscoring the strength of the Fitbit brand and growing relevancy of wearables as part of consumers’ everyday lives,” said James Park, Fitbit co-founder and CEO. “We continue to grow and are profitable, however not at the pace previously expected. We are focused on improving the utility of our products and integrating more deeply into the healthcare ecosystem and believe we can leverage our brand and community to unlock new avenues and adjacencies of growth.”


Third Quarter 2016 Financial Summary    
 
For the Three Months Ended
 
For the Nine Months Ended
In millions, except percentages and per share amounts
September 30,
2015
 
October 1,
2016
 
September 30,
2015
 
October 1,
2016
GAAP Results
 
 
 
 
 
 
 
Revenue
$
409.3

 
$
503.8

 
$
1,146.4

 
$
1,595.7

Gross Margin
47.9
%
 
47.8
%
 
48.2
%
 
45.1
%
Net Income
$
45.8

 
$
26.1

 
$
111.5

 
$
43.5

Diluted Net Income Per Share
$
0.19

 
$
0.11

 
$
0.48

 
$
0.18

Non-GAAP Results
 
 
 
 
 
 
 
Gross Margin
48.3
%
 
48.1
%
 
48.3
%
 
45.4
%
Net Income
$
59.2

 
$
45.7

 
$
166.7

 
$
99.8

Diluted Net Income Per Share
$
0.24

 
$
0.19

 
$
0.72

 
$
0.41

Adjusted EBITDA
$
85.0

 
$
80.8

 
$
264.6

 
$
174.2

Devices Sold
4.8

 
5.3

 
13.1

 
15.8

For additional information regarding the non-GAAP financial measures, see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below.
For additional information regarding the change to our quarterly reporting calendar, see “Change to Quarterly Reporting Calendar” below.


Third Quarter 2016 Financial Highlights
•
Revenue increased 23% year-over-year to $504 million
•
U.S. comprised 72% of Q316 revenue; EMEA 16%, APAC 7%, and Other Americas 5%
•
U.S. revenue grew 33% year-over-year; EMEA 64%, APAC (45)%, and Other Americas 7%









•
GAAP net income of $26 million, non-GAAP net income of $46 million
•
GAAP diluted net earnings per share (EPS) of $0.11, non-GAAP EPS of $0.19
•
Adjusted EBITDA of $81 million
•
New products – Fitbit Blaze TM, Alta TM, Fitbit Charge 2 TM, Fitbit Flex 2 TM and related accessories – comprised 79% of Q316 revenue, compared to 54% in Q216.
•
GAAP and non-GAAP gross margin were flat year-over-year at 48% and up 600 basis points sequentially. Higher estimated warranty claims for legacy products were offset by lower costs on certain replacement units.
•
GAAP operating expenses increased by 52% and non-GAAP operating expenses increased by 46% primarily driven by a 93% increase in GAAP and 91% increase in non-GAAP R&D spend. Sales and Marketing costs remain the largest expense line item with GAAP and non-GAAP costs rising 23%. The expense in R&D and sales and marketing was to bolster innovation and growth. The bulk of the expense came from headcount. R&D headcount increased 105% year-over-year and represented approximately 60% of our workforce.

Third Quarter 2016 and Recent Fitbit Operational Highlights
•
11% growth in unit sales, 11% rise in average selling price
•
60% of the activations in the quarter came from new customers buying new products, 40% from customers who made repeat purchases of new products. Of the repeat customers, approximately 20% were reactivations (customers who were inactive for 90 days or greater).
•
Corporate wellness: Expanded reach by signing partnership with Virgin Pulse, one of the leading corporate wellness technology companies; added new customers including Pitney Bowes and Dr. Pepper/Snapple Group.
•
Substantially completed the global installation of new display materials in many retail locations.
•
Introduced two new products, Charge 2 and Flex 2, and associated accessories; introduced a new accessories partnership with Simply Vera Vera Wang for Kohls.
•
Introduced Blaze and Alta gold series and new accessories for each device.
•
Launched new software feature Adventures, providing a virtual, personal challenge experience for Fitbit users.

Business Outlook
•
Full year 2016:
The company expects revenue between $2.320 billion and $2.345 billion, representing growth of 25%-26%, with non-GAAP earnings per diluted share in the range of $0.55 to $0.59, and a non-GAAP tax rate of approximately 34%.

•
Fourth quarter 2016:
The company expects revenue between $725 million and $750 million, representing growth of 2%-5%, with non-GAAP earnings per diluted share in the range of $0.14 to $0.18, and a non-GAAP tax rate of approximately 33%.







Webcast and Conference Call Information
Fitbit will host a conference call today at 5:00 p.m. Eastern Time, 2:00 p.m. Pacific Time, to discuss its results. Investors may access a free, live webcast of the call through the Investor section of Fitbit’s website at investor.fitbit.com. The call can also be accessed by dialing (719) 325-2272, access code 3628033. A replay of the call will be archived on Fitbit’s website for the following six months.
Regulation FD Notice
Fitbit intends to use its investor.fitbit.com website as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD beginning on January 1, 2017.
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding our financial outlook for the fourth quarter 2016, and full year 2016, the potential for new and repeat customers to purchase our devices and potential for future growth in the connected health and fitness market and adjacent markets. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: the effects of the highly competitive market in which we operate, including competition from much larger technology companies; our ability to anticipate and satisfy consumer preferences in a timely manner, our ability to successfully develop and timely introduce new products and services or enhance existing products and services; any inability to accurately forecast consumer demand and adequately manage our inventory; our ability to ship products on the timelines we anticipate and unexpected delays; quarterly and seasonal fluctuations; our reliance on third-party suppliers, contract manufacturers, and logistics providers, and our limited control over such parties; delays in procuring components and product from these third parties; product liability issues, security breaches or other defects, which may adversely affect product performance, our reputation and brand awareness and overall market acceptance of our products and services; warranty claims; the fact that the market for connected health and fitness devices is relatively new and unproven; the ability of our channel partners to sell our products; litigation and related costs; privacy; other general market, political, economic and business conditions.

Additional risks and uncertainties that could affect our financial results are included under the caption “Risk Factors” in our Annual Report on Form 10-K for the full year ended December 31, 2015 and our most recently filed Quarterly Report on Form 10-Q, which are available on our Investor Relations website at investor.fitbit.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended October 1, 2016. All forward-looking statements contained herein are based on information available to us as of the date hereof and we do not assume any obligation to update these statements as a result of new information or future events.

Change to Quarterly Reporting Calendar
Our fiscal year ends on December 31 of each year. In the first quarter of 2016, we adopted a 4-4-5 week quarterly calendar, which, for the 2016 fiscal year, is comprised of four fiscal quarters ending on April 2, 2016, July 2, 2016, October 1, 2016, and December 31, 2016. We did not adjust operating results for quarters prior to 2016. There were 91 and 92 days in the three months ended October 1, 2016 and September 30, 2015, respectively, and 275 and 273 days in the nine months ended October 1, 2016 and September 30, 2015, respectively.


Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: non-GAAP gross margin; non-GAAP operating expenses; non-GAAP



operating income; non-GAAP net income; non-GAAP diluted shares; non-GAAP diluted net income per share; and adjusted EBITDA. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP.

We use non-GAAP measures to internally evaluate and analyze financial results. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present similar non-GAAP financial measures.

There are limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of items, specifically stock-based compensation expense, amortization of intangible assets, and the related income tax effects of the aforementioned exclusions, that are recurring and will be reflected in our financial results for the foreseeable future. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. A reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

Guidance for non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets, and tax effects associated with these items. We have not reconciled guidance for non-GAAP gross margin, non-GAAP diluted shares, non-GAAP diluted net income per share, adjusted EBITDA, and non-GAAP tax rate to their most directly comparable GAAP measures because items that impact these measures are out of our control and/or cannot be reasonably predicted. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.

The following are explanations of the adjustments that are reflected in one or more of our non-GAAP financial measures:
•
In March 2014, we recalled the Fitbit Force after some of our users experienced allergic reactions to adhesives in the wristband. This recall primarily impacted our results for the fourth quarter of 2013, the first quarter of 2014 and the fourth quarter of 2015.
•
Stock-based compensation expense relates to equity awards granted primarily to our employees. We exclude stock-based compensation expense because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expense using a variety of valuation methodologies and subjective assumptions.
•
Litigation expense relates to legal costs incurred due to litigation with Aliphcom, Inc. d/b/a Jawbone. We exclude these expenses because we do not believe these expenses have a direct correlation to the operations of our business and because of the singular nature of the claims underlying the Jawbone litigation matters. We began excluding Jawbone litigation costs in the second quarter as these costs significantly increased during the second quarter of 2016, and may continue to be material for the remainder of 2016. Although not excluded in reporting for the first quarter of 2016, these litigation expenses were $9.1 million.
•
Revaluation of redeemable convertible preferred stock warrant liability is a non-cash charge that will not recur in the periods following our initial public offering.
•
Amortization of intangible assets relates to our acquisition of FitStar. We exclude these amortization expenses because we do not believe these expenses have a direct correlation to the operation of our business.



•
The change in contingent consideration relates to our acquisition of FitStar. This is a non-recurring benefit that has no direct correlation to the operation of our business.
•
Income tax effect of non-GAAP adjustments relates to the tax effect of the adjustments that we incorporate into non-GAAP financial measures in order to provide a more meaningful measure of non-GAAP net income. 
•
Adjustment to shares includes the conversion of the redeemable convertible preferred stock into shares of common stock as though the conversion had occurred at the beginning of all periods presented, and the shares issued in our initial public offering in June 2015, as if they had been outstanding since the beginning of the second quarter of 2015.

For more information on our non-GAAP financial measures and a reconciliation of such measures to the nearest GAAP measure, please see the “Reconciliation of GAAP to Non-GAAP Financial Measures” table in this press release.

About Fitbit, Inc.

Fitbit helps people lead healthier, more active lives by empowering them with data, inspiration and guidance to reach their goals. As the leader in the connected health and fitness category, Fitbit designs products and experiences that track everyday health and fitness. Fitbit’s diverse line of award-winning products includes Fitbit Surge®, Fitbit BlazeTM, Fitbit Charge 2TM, Fitbit Charge HRTM, AltaTM, Fitbit ChargeTM, Fitbit Flex 2TM, Fitbit Flex®, Fitbit One® and Fitbit Zip® activity trackers, as well as the Aria® Wi-Fi Smart Scale. Fitbit products are carried in 54,000 retail stores, and are available in 65 countries, around the globe. Fitbit Group Health uses the power of the Fitbit activity trackers, software, and services to deliver innovative solutions for corporate wellness, weight management, insurance and clinical research.
Fitbit, the Fitbit logo, Fitbit Surge, Fitbit Blaze, Fitbit Charge 2, Fitbit Charge HR, Alta, Fitbit Charge, Fitbit Flex 2, Fitbit Flex, Fitbit One, Fitbit Zip, Aria, PurePulse, SmartTrack and FitStar are trademarks, service marks and/or registered trademarks of Fitbit in the United States and in other countries. All other trademarks, service marks, and product names used herein are the property of their respective owners.
Connect with us on Facebook, Instagram or Twitter and share your Fitbit experience.

Investor Contact:
Tom Hudson, (415) 604-4106
investor@fitbit.com

Media Contact:
Jen Ralls, (415) 722-6937
PR@fitbit.com






FITBIT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share amounts)
(unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 30,
2015
 
October 1,
2016
 
September 30,
2015
 
October 1,
2016
Revenue
$
409,262

 
$
503,802

 
$
1,146,428

 
$
1,595,686

Cost of revenue
213,249

 
263,144

 
593,664

 
876,304

Gross profit
196,013

 
240,658

 
552,764

 
719,382

Operating expenses:
 
 
 
 
 
 
 
Research and development
42,890

 
82,972

 
95,808

 
235,129

Sales and marketing
65,115

 
79,872

 
178,672

 
305,061

General and administrative
20,698

 
33,333

 
48,327

 
106,297

Change in contingent consideration
—

 
—

 
(7,704
)
 
—

Total operating expenses
128,703

 
196,177

 
315,103

 
646,487

Operating income
67,310

 
44,481

 
237,661

 
72,895

Interest income (expense), net
(216
)
 
970

 
(1,062
)
 
2,391

Other income (expense), net
(744
)
 
(1,037
)
 
(59,129
)
 
68

Income before income taxes
66,350

 
44,414

 
177,470

 
75,354

Income tax expense
20,516

 
18,294

 
65,958

 
31,858

Net income
$
45,834

 
$
26,120

 
$
111,512

 
$
43,496

 
 
 
 
 
 
 
 
Less: noncumulative dividends to preferred stockholders
—

 
—

 
(2,526
)
 
—

Less: undistributed earnings attributable to participating securities
—

 
—

 
(50,316
)
 
—

Net income attributable to common stockholders—basic
45,834

 
26,120

 
58,670

 
43,496

Add: undistributed earnings to dilutive participating securities
—

 
—

 
7,655

 
—

Net income attributable to common stockholders—diluted
$
45,834

 
$
26,120

 
$
66,325

 
$
43,496

 
 
 
 
 
 
 
 
Net income per share attributable to common stockholders:
 
 
 
 
 
 
 
Basic
$
0.22

 
$
0.12

 
$
0.57

 
$
0.20

Diluted
$
0.19

 
$
0.11

 
$
0.48

 
$
0.18

Weighted average shares used to compute net income per share attributable to common stockholders:
 
 
 
 
 
 
 
Basic
206,657

 
222,412

 
102,741

 
219,079

Diluted
243,660

 
243,687

 
136,985

 
242,652







FITBIT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
 
December 31,
 2015
 
October 1,
2016
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
535,846

 
$
284,220

Marketable securities
128,632

 
387,882

Accounts receivable, net
469,260

 
461,351

Inventories
178,146

 
214,955

Prepaid expenses and other current assets
43,530

 
86,372

Total current assets
1,355,414

 
1,434,780

Property and equipment, net
44,501

 
94,311

Goodwill
22,157

 
25,217

Intangible assets, net
12,216

 
14,578

Deferred tax assets
83,020

 
110,814

Other assets
1,758

 
10,526

Total assets
$
1,519,066

 
$
1,690,226

Liabilities and Stockholders’ Equity
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
260,842

 
$
253,138

Accrued liabilities
194,977

 
218,526

Deferred revenue
44,448

 
45,001

Fitbit Force recall reserve
5,122

 
1,494

Income taxes payable
2,868

 
1,231

Total current liabilities
508,257

 
519,390

Other liabilities
29,358

 
53,732

Total liabilities
537,615

 
573,122

 
 
 
 
Stockholders’ equity
 
 
 
Common stock and additional paid-in capital
737,841

 
832,279

Accumulated other comprehensive income
691

 
(1,590
)
Retained earnings
242,919

 
286,415

Total stockholders’ equity
981,451

 
1,117,104

Total liabilities and stockholders’ equity
$
1,519,066

 
$
1,690,226





Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except percentages and per share amounts)
(unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 30,
2015
 
October 1,
2016
 
September 30,
2015
 
October 1,
2016
Non-GAAP gross profit:
 
 
 
 
 
 
 
GAAP gross profit
$
196,013

 
$
240,658

 
$
552,764

 
$
719,382

Stock-based compensation expense
1,351

 
1,014

 
2,622

 
3,407

Impact of Fitbit Force recall
—

 
—

 
(2,040
)
 
—

Intangible assets amortization
432

 
451

 
899

 
1,354

Non-GAAP gross profit
$
197,796

 
$
242,123

 
$
554,245

 
$
724,143

 
 
 
 
 
 
 
 
Non-GAAP gross profit as a percentage of revenue:
 
 
 
 
 
 
 
GAAP gross profit as a percentage of revenue
47.9
%
 
47.8
%
 
48.2
 %
 
45.1
%
Stock-based compensation expense
0.3

 
0.2

 
0.2

 
0.2

Impact of Fitbit Force recall
—

 
—

 
(0.2
)
 
—

Intangible assets amortization
0.1

 
0.1

 
0.1

 
0.1

Non-GAAP gross profit as a percentage of revenue
48.3
%
 
48.1
%
 
48.3
 %
 
45.4
%
 
 
 
 
 
 
 
 
Non-GAAP research and development:
 
 
 
 
 
 
 
GAAP research and development
$
42,890

 
$
82,972

 
$
95,808

 
$
235,129

Stock-based compensation expense
(5,893
)
 
(12,314
)
 
(10,910
)
 
(34,432
)
Non-GAAP research and development
$
36,997

 
$
70,658

 
$
84,898

 
$
200,697

 
 
 
 
 
 
 
 
Non-GAAP sales and marketing:
 
 
 
 
 
 
 
GAAP sales and marketing
$
65,115

 
$
79,872

 
$
178,672

 
$
305,061

Stock-based compensation expense
(2,451
)
 
(3,030
)
 
(5,080
)
 
(8,492
)
Non-GAAP sales and marketing
$
62,664

 
$
76,842

 
$
173,592

 
$
296,569

 
 
 
 
 
 
 
 
Non-GAAP general and administrative:
 
 
 
 
 
 
 
GAAP general and administrative
$
20,698

 
$
33,333

 
$
48,327

 
$
106,297

Stock-based compensation expense
(3,339
)
 
(3,647
)
 
(7,072
)
 
(11,844
)
Litigation expense — Jawbone
—

 
(6,062
)
 
—

 
(17,620
)
Impact of Fitbit Force recall
(20
)
 
—

 
53

 
—

Intangible assets amortization
(82
)
 
(61
)
 
(164
)
 
(224
)
Non-GAAP general and administrative
$
17,257

 
$
23,563

 
$
41,144

 
$
76,609

 
 
 
 
 
 
 
 
Non-GAAP operating expenses:
 
 
 
 
 
 
 
GAAP operating expenses
$
128,703

 
$
196,177

 
$
315,103

 
$
646,487

Stock-based compensation expense
(11,683
)
 
(18,991
)
 
(23,062
)
 
(54,768
)
Litigation expense — Jawbone
—

 
(6,062
)
 
—

 
(17,620
)
Impact of Fitbit Force recall
(20
)
 
—

 
53

 
—

Intangible assets amortization
(82
)
 
(61
)
 
(164
)
 
(224
)
Change in contingent consideration
—

 
—

 
7,704

 
—

Non-GAAP operating expenses
$
116,918

 
$
171,063

 
$
299,634

 
$
573,875





Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except percentages and per share amounts)
(unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 30,
2015
 
October 1,
2016
 
September 30,
2015
 
October 1,
2016
Non-GAAP operating income:
 
 
 
 
 
 
 
GAAP operating income
$
67,310

 
$
44,481

 
$
237,661

 
$
72,895

Stock-based compensation expense
13,034

 
20,005

 
25,684

 
58,175

Litigation expense — Jawbone
—

 
6,062

 
—

 
17,620

Impact of Fitbit Force recall
20

 
—

 
(2,093
)
 
—

Intangible assets amortization
514

 
512

 
1,063

 
1,578

Change in contingent consideration
—

 
—

 
(7,704
)
 
—

Non-GAAP operating income
$
80,878

 
$
71,060

 
$
254,611

 
$
150,268

 
 
 
 
 
 
 
 
Non-GAAP net income and net income per share:
 
 
 
 
 
 
 
Net income
$
45,834

 
$
26,120

 
$
111,512

 
$
43,496

Stock-based compensation expense
13,034

 
20,005

 
25,684

 
58,175

Litigation expense — Jawbone
—

 
6,062

 
—

 
17,620

Impact of Fitbit Force recall
20

 
—

 
(2,093
)
 
—

Revaluation of redeemable convertible preferred
 
 
 
 
 
 
 
stock warrant liability
—

 
—

 
56,655

 
—

Intangible assets amortization
514

 
512

 
1,063

 
1,578

Change in contingent consideration
—

 
—

 
(7,704
)
 
—

Income tax effect of non-GAAP adjustments
(183
)
 
(6,955
)
 
(18,389
)
 
(21,081
)
Non-GAAP net income
$
59,219

 
$
45,744

 
$
166,728

 
$
99,788

 
 
 
 
 
 
 
 
GAAP diluted shares
243,660

 
243,687

 
136,985

 
242,652

Diluted effect of redeemable convertible preferred
 
 
 
 
 
 
 
stock conversion
—

 
—

 
88,112

 
—

Initial public offering shares
—

 
—

 
6,724

 
—

Other dilutive equity awards
—

 
—

 
1,201

 
—

Non-GAAP diluted shares
243,660

 
243,687

 
233,022

 
242,652

Non-GAAP diluted net income per share
$
0.24

 
$
0.19

 
$
0.72

 
$
0.41

 
 
 
 
 
 
 
 
Adjusted EBITDA:
 
 
 
 
 
 
 
Net income
$
45,834

 
$
26,120

 
$
111,512

 
$
43,496

Impact of Fitbit Force recall
20

 
—

 
(2,093
)
 
—

Stock-based compensation expense
13,034

 
20,005

 
25,684

 
58,175

Litigation expense — Jawbone
—

 
6,062

 
—

 
17,620

Revaluation of redeemable convertible preferred
 
 
 
 
 
 
 
stock warrant liability
—

 
—

 
56,655

 
—

Depreciation and intangible assets amortization
5,367

 
11,275

 
13,541

 
25,461

Change in contingent consideration
—

 
—

 
(7,704
)
 
—

Interest (income) expense, net
216

 
(970
)
 
1,062

 
(2,391
)
Income tax expense
20,516

 
18,294

 
65,958

 
31,858

Adjusted EBITDA
$
84,987

 
$
80,786

 
$
264,615

 
$
174,219





Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except percentages and per share amounts)
(unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 30,
2015
 
October 1,
2016
 
September 30,
2015
 
October 1,
2016
 
 
 
 
 
 
 
 
Stock-based compensation expense:
 
 
 
 
 
 
 
Cost of revenue
$
1,351

 
$
1,014

 
$
2,622

 
$
3,407

Research and development
5,893

 
12,314

 
10,910

 
34,432

Sales and marketing
2,451

 
3,030

 
5,080

 
8,492

General and administrative
3,339

 
3,647

 
7,072

 
11,844

Total stock-based compensation expense
$
13,034

 
$
20,005

 
$
25,684

 
$
58,175



FITBIT, INC.
Revenue by Geographical Region
(In thousands)
(unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 30,
2015
 
October 1,
2016
 
September 30,
2015
 
October 1,
2016
 
 
 
 
 
 
 
 
United States
$
270,814

 
$
361,239

 
$
848,789

 
$
1,158,116

Americas excluding United States
24,180

 
25,939

 
54,408

 
76,708

Europe, Middle East, and Africa
49,214

 
80,932

 
123,981

 
255,127

APAC
65,054

 
35,692

 
119,250

 
105,735

Total
$
409,262

 
$
503,802

 
$
1,146,428

 
$
1,595,686